Private members-only forum

Series LLC vs multiple LLCs for real estate portfolio - worth it?

Started by TransactionalLaw_Dan_11 · Oct 2, 2023 · 0 replies
For informational purposes only. Not legal advice.
TD
TransactionalLaw_Dan_11 OP

EDIT: added more context below. I have 6 rental properties in Texas. Currently they're all in one LLC. My CPA says I should separate them for liability protection โ€” if someone gets hurt at property A, they can't go after properties B through F.

He suggested a Series LLC where I can create a new "series" for each property under one master LLC. But when I googled it, I found a lot of warnings about banks not understanding them, title companies rejecting them, etc.

Is the Series LLC actually a good structure, or should I just form 6 separate LLCs?

TD
TransactionalLaw_Dan_11 OP

UPDATE: Decided to go with separate Texas LLCs for each property. Yes, it costs more upfront which sucks, but the refinancing flexibility is worth it. Forming them now with a holding LLC structure as suggested lol.

Thanks everyone for the reality check on Series LLCs. The theory is nice but the practical friction seems real.